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1. How did the company start?

Ford motor company was founded by Henry Ford, on June 16, 1903. Henry Ford built his

first experimental car in a workshop behind his home in Detroit in 1896. After formation of the

Ford Motor Company, the first Ford car was assembled at the Mack Avenue plant in July 1903.

Five years later, in 1908, the highly successful Model T was introduced. Demand for this car was

so great that Ford developed new mass-production methods in order to manufacture it in sufficient

quantities; in 1911 he established the industrys first U.S. branch assembly plant (in Kansas City,

Missouri) and opened the companys first overseas production plant in Manchester, England; in

1913 he introduced the worlds first moving assembly line for cars; and in 1914, to further improve

labor productivity, he introduced the $5 daily wage for an eight-hour day (replacing $2.34 for a

nine-hour day).

The history of Toyota started in 1933 with the company being a division of Toyoda

Automatic Loom Works devoted to the production of automobiles under the direction of the

founder's son, Kiichiro Toyoda. Kiichiro Toyoda had traveled to Europe and the United States in

1929 to investigate automobile production and had begun researching gasoline-powered engines

in 1930. Toyoda Automatic Loom Works was encouraged to develop automobile production by

the Japanese government, which needed domestic vehicle production, due to the war with China.

In 1934, the division produced its first Type A Engine, which was used in the first Model A1

passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA

passenger car started in 1936.

2. What is companys mission?

Fords mission statement is One Team. One Plan. One Goal. This mission statement is

also known as the One Ford mission, which is part of the One Ford plan that was unveiled in

2008 under CEO Alan Mulallys leadership. Ford explains that the expanded form of its mission

statement is as follows:

One Team: People working together as a lean, global enterprise for automotive leadership,

as measured by: Customer, Employee, Dealer, Investor, Supplier, Union/Council, and

Community Satisfaction.
One Plan: Aggressively restructure to operate profitably at the current demand and

changing model mix; Accelerate development of new products our customers want and value;

Finance our plan and improve our balance sheet; Work together effectively as one team.

One Goal: An exciting viable Ford delivering profitable growth for all.

The Toyota mission statement in America is to attract and attain customers with high-valued

products and services and the most satisfying ownership experience. While in the Philippines are

(1)To dominate our markets through dynamic selling and timely delivery of attractive products,

with excellent customer service and continuous product improvement. (2)To produce vehicles

and components of outstanding quality, using advance technology, continuously improving

methods and environment-friendly processes while maintaining safe working conditions. (3)To

sustain Company profitability, stability, productivity and growth by engaging in effective financial

and resource management for the collective gain of the Toyota Family and the society we serve.

To sustain Team Member's morale and productivity by developing their full potential and total

well-being, and by establishing mutual trust, mutual responsibility, and harmony through open

communication.

3. What is the companys strategy? Does it differ from the strategy it had two years ago?

Fords generic strategy has changed over time. Initially, Fords generic strategy was cost

leadership. This generic strategy supports business competitive advantage on the basis of cost

reduction and low prices to attract customers. In the early 1900s, Fords vision was to make its

automobiles affordable for working-class Americans. To apply this generic strategy, the firm

developed the assembly line method to minimize costs and maximize productivity. Ford

succeeded in attracting customers based on this generic strategy. A strategic objective for

competitive advantage based on this generic strategy is cost minimization through process

streamlining.

However, Ford Motor Companys generic strategy did not protect the business from

competition with General Motors. By 1927, GM overtook Ford to become the largest American

automobile manufacturer. GM used its generic strategy of broad differentiation to offer a wider

array of products. Americans were gaining higher wages and started valuing style and design,

and not just low prices. Today, given its current One Ford plan, Ford Motor Company has been
moving its generic strategy to emphasize differentiation for competitive advantage. Ford still

maintains its cost leadership generic strategy. However, the firm is moving toward the broad

differentiation generic strategy to compete against firms like GM and Toyota. Thus, a strategic

objective based on Fords current generic strategy adjustment is product innovation to gain

stronger competitive advantage.

Toyota Motor Corporations generic strategy is a combination of the cost leadership

generic strategy and the broad differentiation generic strategy. Cost leadership entails

minimizing cost of operations and selling prices. On the other hand, the broad differentiation

generic strategy requires developing business and product uniqueness to ensure Toyotas

competitive advantage. The combination of these generic strategies supports Toyotas global

reach in all market segments.

A strategic goal corresponding to Toyotas generic strategy is to minimize production costs

to attain cost leadership. The company does so through the just-in-time (JIT) manufacturing

method, which is also known as the Toyota Production System (TPS). This method addresses

Toyotas generic strategy by minimizing waste, inventory cost, and response time. As a result,

the firm achieves maximum business efficiency. On the other hand, Toyota has the strategic goal

of innovation to address the broad differentiation component of its generic strategy. Innovation

leads to unique and attractive products for all market segments. Thus, Toyota fulfills its generic

strategy.

4. What are the companys core competencies?

5. What are the value chain processes for this company?

6. What products (services) does the company manufacture?

Ford Motor Co. and Toyota Motor Corp are two of the worlds largest auto companies.

Both engage in manufacturing and selling automobiles. Automotive segment of Ford includes sale

of Ford and Lincoln brand vehicles, service parts, and accessories. Toyotas automotive segment
includes design, manufacture, assemble and sell passenger cars, minivans, trucks, vehicle parts,

and accessories.

7. What is the companys organizational structure?

According to Panmore Institute, the organizational structure of Ford is based on the

need to control operations according to regional market conditions. Its main features include

corporate hierarchy, global functional groups, and regional geographic division. There are three

regional divisions of Ford (1. America 2. Europe, Middle East, and Africa, and 3. Asia Pacific.)

Each division has an executive VP.

In 2013, Toyota started implementing new organizational structure which is corporate

structure. Its main characteristics are global hierarchy, product-based divisions, and geographic

divisions. Toyota has eight divisions. (Japan, North America, Europe, East Asia and Oceania,

China, Asia and Middle East, Africa, and Latin America and Caribbean)

8. What would be your top priorities for this company in the coming year?

9. Based on your finding, which of these two companies would you accept employment?

Why or why not?

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